Company Overview

Aye Finance Limited (formerly Aye Finance Private Limited) is an RBI-registered NBFC-ML focused on providing loans to micro-scale MSMEs across India. The company reported strong financial results for FY 2025-26 and successfully completed its IPO in February 2026.

Financial Performance FY 2025-26

  • Assets Under Management (AUM): ₹7,044 crores (27% YoY growth from ₹5,534 crores)
  • Total Income: ₹1,797 crores (20% YoY growth)
  • Profit After Tax: ₹194 crores (13% YoY growth from ₹171.27 crores)
  • Net Interest Margin: 14.67% (70 bps decrease from previous year)
  • Gross NPA: 4.77% as of March 2026 (decreased from 4.9% in first half)
  • Net NPA: 1.79%
  • Capital Adequacy Ratio (CRAR): 42.24% as on March 31, 2026 (up from 34.92% in FY2025)
  • Return on Assets: 4.6% in Q4
  • Return on Equity: 16.0% in Q4

IPO Completion (February 2026)

The company successfully completed its ₹1,010 crores IPO:

  • Fresh Issue: ₹710 crores (55,038,759 equity shares)
  • Offer for Sale: ₹300 crores (23,255,812 equity shares)
  • Issue Price: ₹129 per share
  • Net Proceeds Received: ₹672.24 crores (after deducting offer expenses)
  • Listing Date: February 16, 2026 on NSE and BSE
  • Post-IPO Net Worth: ₹2,533 crores

Operational Highlights

  • Active Clients: ~6.4 lakhs
  • Branches: 571 branches across 18 states and 3 union territories (44 new branches added)
  • Employees: 10,800+ employees (increased by 2,026 during the year)
  • Product Mix: Hypothecation loans (76.9% of AUM, avg ticket ₹1.6 lakhs) and Mortgage loans (21.6% of AUM, avg ticket ₹4.6 lakhs)
  • Technology: 100% paperless loan origination, 32% AI/ML underwriting decisions, 84.04% digital collections

Capital Structure and Shareholding

  • Authorized Capital: 41,000,000 equity shares of ₹2 each (₹82.00 crores)
  • Paid-up Capital: 24,678,426 equity shares of ₹2 each (₹49.36 crores)
  • Major Shareholders: Elevation Capital (12.59%), LGT Capital (10.05%), Alpha Wave (7.78%), British International Investment (7.40%)

Asset Quality and Risk Management

  • Gross Loan Portfolio: ₹6,535.41 crores
  • Stage 1 (Performing): 94.19% of portfolio
  • Provision Coverage: Stage 1 (0.25%), Stage 2 (28.29%), Stage 3 (36.04%)
  • Credit Costs: Averaged 4.7% for the year, declining to 4.3% in Q4
  • Collection Efficiency: 99.4% Non-OD Collection Efficiency in March 2026

Future Outlook and Strategy

The company targets 28-33% CAGR growth to reach ₹14,000-15,000 crores AUM over next three years, driven by:

  • Increased mortgage loan share to 30% of portfolio
  • Digital automation and AI/ML-led underwriting improvements
  • Geographic expansion while deepening existing market penetration
  • Operating efficiency through branch maturity

Regulatory Compliance and Governance

The company has complied with all RBI regulations applicable to NBFC-ML and SEBI listing requirements. Board comprises 7 members with 5 independent directors (72% independence). The company maintains robust risk management framework with geographic diversification and 59+ active lender relationships.